Policy

Illinois Asset Building Group
2010 Policy Agenda

Far too many families in America are living from paycheck to paycheck. Nearly 1 in 5 American households owes more than it owns; for women headed households, this percentage increases to 1 in 4 households. One in 3 minority households have 0 or negative net worth. More than 3/4th of low income working families do not have enough assets to finance living expenses for 3 months at the federal income poverty level should they lose their main source of income.

In Illinois, nearly 22% of residents are asset poor and 14% experience extreme asset poverty, meaning they have zero or negative assets. Illinois is close to the national average in these measurements. The state ranks 25th in the country for rate of asset poverty. It also ranks 29th in the disproportionate prevalence of asset poverty among minority communities. Importantly, all of these indicators of financial insecurity are bound to worsen given the current economic climate.

Not only does financial insecurity destabilize families, it also jeopardizes the long-term vitality and resiliency of cities and local economies. The dismal economic forecast for the next few years will only exacerbate these problems – putting financial stress on families already stretching to make ends meet. Lack of savings is a serious issue demanding a solution that not only educates people about appropriate ways to spend and invest, but also includes mechanisms for increasing asset ownership and asset protections.

The Illinois Asset Building Group is a diverse statewide coalition organized to build the stability and strength of Illinois families and communities through increased asset ownership and asset protection opportunities for all. Made up of community leaders, service providers, researchers, advocates, financial institutions, organizers, and business leaders, IABG seeks to expand asset-building opportunities in Illinois through effective policy and system change.

In order to fulfill its mission, IABG will address the following policy priorities during 2010:

Alternative Small Dollar Loan Programs and Policies
Asset Limit Reform
Banking the Unbanked/ Underbanked Initiatives
Children’s Savings Accounts
Financial Education
529 College Savings Plans
Earned Income Tax Credit Expansion
Emergency Savings Accounts
Individual Development Accounts
Predatory Loan Reform
Racial Wealth Gap
Universal Voluntary Retirement Accounts
Coalition Building Activities